Close to $200 million Cash ObjectiveVLE now has $63 m cad in cash and HWX $112 million CAD for a total cash position of $175 m cad in cash and no debt.
I formly believe Another will soon join the group and boost cash to over $200 m
The core of the current HWX management team has built and sold three prior franchises, and together with VLE are in a position to take advantage of the pandemic induced oil price collapse which has served as a catalyst for the next consolidation phase that is necessary to bring a fragmented and under-capitalized Canadian basin to a more rationale and sustainable level.
This has created an opportunity for well-capitalized buyers to target operators that while holding desirable assets, and relatively clean capital structures, do not have access to sufficient capital, as such the value proposition for shareholders of these entities is challenged.
With a rock-solid balance sheet, and solid institutional sponsorshipon both sides this new entity will be a strong contender to capitalize on this consolidation wave, ultimately creating a formidable operator in the Canadian oil/gas patch